This post was last updated on September 14th, 2013 at 10:56 pm
The kind of lives that we are spending today cannot be possible without credit or credit card. No matter how hard you try or how much money you earn, you will always find yourself in need of credit. For me, it is just the state of a mind. If you are determined to live without credit, you can achieve this goal but for sure, you will have to be patient all the time.
Here are some great tips for you that can help you go off credit very easily.
Emergency Fund Saving
The common concept is that, a credit card is used as an emergency fund. If you run into a situation where you have to spend some extra money that you don’t have in your pocket at that time then you can easily use your credit card to make the purchase. The good thing is that, you can pay that bill off after a month. However, if you want to go credit free then you will have to stop using your credit card and start saving some funds for the emergency needs. You can start saving a little amount of money each month so it can be used in the time of need.
Make Goals and Save for Them
You should not follow your impulse to purchase anything that you like. A good idea is to take some time, think through the decision you are about to make and then decide whether you really need that thing or not. If you come to a decision that the particular product is important for you then instead of making a purchase with your credit card, start saving for that thing. Make a goal and when you have saved enough money, buy that stuff.
Start Using Debit Card
I personally prefer to use Debit Card because you don’t have to keep the cash in your pocket. It works just like a credit card but the only difference is that, it will only work when you have deposited funds in it. So, if you don’t have money in your bank account, you will not be able to make a purchase by using your debit card. This will help you fight the impulse and as an end result, you will be able to purchase only those things that you can afford while staying under your financial limits.
Open a Savings Account
This is another thing that you can do to go credit free. Instead of paying the credit, you should start earning it. A savings account is a great way to manage your funds and increase them over the time. When you deposit funds in a savings account, banks use them for doing business and in return, they offer you monthly/ annual profit. That profit is automatically added to your savings account. So, if you will keep depositing money in your savings account, it will only increase over the period of time.